Tax Credits – Scientific Research and Experimental Development

The Scientific Research and Experimental Development (SR&ED) Tax Credit Program provides a 10% tax credit to qualifying corporations that carry on SR&ED in British Columbia after August 31, 1999 and before September 1, 2014.

The SR&ED tax credit has been extended to allow active members of partnerships to claim their proportionate share of the partnership's SR&ED carried on in British Columbia, for qualified expenditures incurred after February 20, 2007.

Qualifying corporations that are Canadian-controlled private corporations (CCPCs) may be entitled to a refundable tax credit of 10% of the lesser of:

• the corporation's SR&ED qualified B.C. expenditures for the tax year
• the expenditure limit as defined under Section 127(10.2) of the federal Income Tax Act

A non-refundable tax credit may be claimed for expenditures in excess of the expenditure limit. The non-refundable credit may also be claimed by other qualifying corporations and CCPCs that are not eligible for the refundable credit.

For more information on the SR&ED tax credit, please see Bulletin CIT 007, British Columbia Scientific Research and Experimental Development Tax Credit and our SR&ED Frequently Asked Questions.

Claiming the credit

To claim the credit, complete Form T666, British Columbia Scientific Research and Experimental Development Tax Credit and file it with your T2 Corporation Income Tax Return. Enter the amount of the non-refundable credit on line 659 and the refundable credit you are claiming on line 674 of Schedule 5, Tax Calculation Supplementary – Corporations.

You must claim the credit no later than 18 months after the end of the tax year in which the qualified expenditures are incurred. The non-refundable credit can be carried forward 10 years or back three years.

Legislation